California City Council Candidate Wants to Lease Former Naval Base to China

Chinese investment in the United States continues to skyrocket. A candidate for city council in Alameda Point, California says that if elected he plans to spearhead a deal with China to lease the cities 918 acre former Naval Base.

The China Daily reports that Stewart Chen says Alameda should consider talking to foreign investors to solve their economic problems. If elected, Chen said he’d be willing to consider potential Alemeda Point investors from a variety of other countries, though a likely starting point in his and others’ minds is China.He states that right now “the money is in Asia,” noting China’s world-leading $1 trillion-plus investment in United States Treasury bills.

Stewart Chen

This is not the first time the conversation of inviting foreign investment into Alameda Point has come up. Former City Council member Frank Matarrese also suggested the city consider foreign investment at the Point. He asked city to consider entering a foreign trade zone centered at the Port of Oakland, which would offer foreign firms tariff breaks and other benefits.

Mayor Ed Lee said in August that Lennar Corp. is close to a deal with the China Development Bank for a $1.7 billion loan that’s expected to jump-start development projects on former Navy bases at Treasure Island and Hunter’s Point.

The Wall Street Journal said if the deal is executed, this could become a test case for others like it in the United States. The Center for Strategic & International Studies reports that the China $11.6 billion in the United States between 2003 and 2010, with $5.3 billion in investments in 2010. Between 2000 and the first half of 2012, the Chinese invested $2 billion in California alone.